Union Finance Minister Nirmala Sitharaman said on Monday that the Centre was more worried about the impact of the Ukraine crisis on exports.
“We are rightly worried about what comes from there, but I am more worried about what is going to happen to our exporters who are doing very well, particularly farm sector exports to Russia and Ukraine,” she said in a post-Union Budget 2022 interaction with industry and trade representatives in Tamil Nadu.
Ms. Sitharaman was responding to a question from Mallika Srinivasan, chairman and managing director of Tractors and Farm Equipment Ltd.
The Finance Minister said there might be issues of exports having been made and payments yet to come in and sought suggestions from the industry.
She said the government was seized of the matter in its granular form, as it was going to have an impact on essentials like edible oil coming from Ukraine. A complete assessment would be made with the respective Ministries.
At a budget conclave organised by Doordarshan, she said steps would be taken to shield people from any increase in the prices of essential commodities. The Finance Minister said that in the last two Budgets, thrust had been on infrastructure, which had a multiplier effect.
Suneeta Reddy, Managing Director, Apollo Hospitals, sought an increase in income tax deduction on health insurance premium for families and parents to improve access to healthcare and a revision in the rates for the Central Government Health Scheme, which had not been revised for a decade. She also flagged pending dues under the scheme.
Responding to her, Finance Secretary T.V. Somanathan agreed that there was a case for revision in the Health Scheme rates and the Health Ministry was working on it.
Revenue Secretary Tarun Bajaj ruled out the possibility of increasing deduction on health care premium, citing the move towards a tax regime with lower rates and without exemption. “A product should be bought based on its strength and not because of tax exemption,” he said.
To a question from G. Viswanathan, Chancellor, Vellore Institute of Technology, on increasing the spending on education to 6% of the GDP, Ms. Sitharaman said there were financial constraints and the government was trying to increase the number of seats in higher educational institutions and through modern technologies.
Karumuttu T Kannan, chairman, Thiagarajar Mills, flagged the issue of increase in cotton prices and pressed for imports for a short time to help the textile industry continue its growth.
G.R. Ananthapadmanabhan, Managing Director, GRT Jewellery India Pvt. Ltd., sought an increase in the digital transaction limit from ₹1 lakh to ₹2 lakh for purchase of jewellery, and relaxations in the Coastal Regulation Zone to develop tourism.
The Finance Minister directed the banks to consider increasing the digital payment limit and said the Coastal Regulation Zone issue would be looked into. The government was addressing the issues of the tourism industry.
N. Srinivasan, vice-chairman and MD, India Cements, pointed to the need for transporting cement from the south (which has 40% of the limestone reserves) to the north and flagged the issues in logistics. The Finance Minister said a meeting would be organised between the Ministry of Road Transport and Highways and the Ministry of Railways.
